Healthcare Revenue Cycle Management Market Research Report, By Type (Integrated Software, Standalone Software), By Component (Software, Services), By Deployment (On-premise, Cloud/Web-Based) and By End-user (Hospitals, Ambulatory Services) - Global Forecast till 2027
ID: MRFR/HCIT/0376-CR | August 2017 | Region: Global | 122 pages
Market Overview
According to MRFR, the Global Healthcare Revenue Cycle Management Market 2020 is touted to exhibit a healthy 12.2% CAGR over the assessment period (2017-2027) and reach a market valuation of USD 175.16 Billion by 2027. There is an increasing need for sales cycle management solutions in the current business scenario.
COVID-19 Analysis
As a result of decreases inpatient volume induced by factors such as social distancing steps, COVID-19 public policy interventions limiting the provision of elective patient care facilities by hospitals and other healthcare providers, common concerns of contracting COVID-19, and other facets of COVID-19 pa, many healthcare providers were grounded, leaving sitting on the runway in March 2020.
One thing providers should do is analyse and optimise their operating processes that comprise their sales cycle management method. While initiatives to diversify and strengthen healthcare services, enhance the experience of patient care, and increase operational efficiencies can lead to the development of the desired economic lift, enhanced sales cycle management practises could be the most efficient way for a healthcare provider to generate the lift required to recover altitude when it pulls out of the COVID-19 turbulence.
Market Dynamics
Drivers
Availability of Advanced Technological Innovations to Drive the Market Growth
Decreasing reimbursements in the healthcare sector, regulatory demands for the use of EHR/EMR, government measures to boost the adoption of RCM products, loss of revenue due to billing mistakes, and workflow changes in healthcare organisations are the key factors driving the growth of the global market. Throughout the research timeframe, technical developments in HRCM applications have greatly affected the development of the industry. The programme recently developed is highly effective and aims to deliver better patient treatment. In comparison, the updated HRCM programme has lowered the unpaid receivable records of many hospitals and healthcare services. In addition, the introduction of standardised medical billing and coding technologies has minimised mistakes and increased clinical performance. The availability of such technologically sophisticated systems has also accelerated the healthcare revenue cycle management industry's growth.
Opportunities
Standalone HRCM software to provide the industry with many growth opportunities
Across a robust network, the growing use of various standalone digital databases and applications would further favour segmental development in coming years. The number of medical reports created in healthcare institutions has also increased multifold with a growing number of patients being treated. Healthcare institutions need to maintain their patient records, inventory, and workforce efficiently while ensuring cost optimization has further increased. This provides RCM manufacturers with greater opportunities to join the rising healthcare industry worldwide.
Restraints
Lack of Skilled Medical Professionals in Emerging Economies to Disrupt Market Growth
To some point, the lack of qualified experts to manage HRCM applications affects the development of the industry. This element, with the absence of trained practitioners, would have a significant effect on underdeveloped economies. It would have a short-term effect on the growth of the sector and fade with changes in the health care infrastructure in underdeveloped countries.
Segmental Analysis
For the sake of the study, the market has been segmented by type, component, deployment, and end-use.
By Type
The healthcare revenue cycle management market is divided into integrated and standalone applications according to type. During the forecast period, the Standalone software/solution segment would experience considerable expansion. Standalone solutions aid in improving the method of bill processing and dispute arbitration. It aims to minimise overall expenses and streamlines sales, helping to navigate the revenue cycle efficiently.
By Components
Key components discussed include software and services. Due to its ease of use, the software sector is gaining substantial precedence in the global economy, and it commanded the largest market share in 2016. By embracing technologically advanced HRCM applications developed by businesses that facilitate reliable and productive control of patients' clinical data and financial data, hospitals try to maximise revenue.
By Deployment
The industry is segmented into on-premise and cloud/web-based by deployment. In the coming years, the healthcare revenue cycle management industry's on-site segment will experience considerable expansion. Platforms for on-premise applications are mounted on the computer or workstation of the customer. Furthermore, on-site sales cycle management applications provide improved data protection and can be secured by avoiding unwanted entry.
By End-use
The industry is segmented by end-users into hospitals and ambulatory services. Due to the increase in hospitals' cash flows, the hospital segment is projected to see substantial sales cycle management industry growth. Due to the rising incidence of illnesses, the number of patients increases, requiring healthcare providers to adopt an effective sales cycle management method for gathering patient data.
Regional Analysis
Global Market's geographical overview has been conducted in four major regions, including the Asia Pacific, the Americas, Europe, and the rest of the world.
Availability of Superior Healthcare Facilities Drives North America HRCM Market
As the region has this propensity to rely heavily on advanced technologies, the Americas are responsible for producing the highest profits. Advanced architecture accommodates such a widespread RCM programme deployment that supports everyone. Furthermore the industry profits immensely from the involvement of many big players in the industry, along with a large annual healthcare spending planned. The growing prevalence of chronic diseases in North America is one of the major factors driving the development of the region. Chronic illnesses boost the need for healthcare facilities such as surgeries, which ultimately boosts the cost of healthcare. In other instances, the U.S. is a developing country that uses technologically updated data processing tools. The software currently developed ensures data protection and safety that will positively affect the market for HRCM software, increasing the growth of the industry.
Availabilty of High Medical Funding to Drive Market Growth
Europe holds the second position, which can be attributed to increased government support for R&D. Other characteristics are quite similar in their impact to that of the Americas, such as well-developed healthcare infrastructure and substantial healthcare funding. The exponential growth in Europe can also be attributed to a growing geriatric population. The geriatric population is vulnerable to chronic infections that have a positive influence on the growth of business. Also, improving the regulatory scenario will guarantee the availability of HRCM software of superior quality, thereby improving the industry's growth.
APAC’s Rise as a Medical Tourism Hub to Drive Market Growth
The APAC is all set to record the fastest development. The healthcare sector is changing remarkably in the region's emerging economies, and many of them are evolving as a medical tourism hub, which has an assertive impact on the global RCM market.
Competitive Landscape
Emerging Players Adapt Of Diverse Approaches to Improve their Competitive Standing
Many healthcare companies use robotic process control, intelligent EDI integration, insurance discovery, and patient solutions for a superior collecting method. This healthcare sector convergence has greatly enhanced the demand for RCM apps, contributing to an increased benefit. The MRFR review clearly indicates that the demand for Healthcare Revenue Cycle Management continues to be a very strong one for both incumbent participants and potential entrants. The industry is likely to witness growth by emerging players by the adaptation of diverse approaches. For eg, the launch, acquisition and joint venture of new product/services.
- General Electric Company (U.S.)
- Epic Systems (U.S.)
- Cerner Corporation (U.S.)
- McKesson Corporation (U.S.)
- Quest Diagnostics (U.S.)
- Allscripts (U.S.)
- Siemens Healthcare (Germany)
Recent Development
December 2020: athenahealth, a leading provider of network-enabled software and services for medical groups and health systems nationwide, today announced that it joined forces with CaduceusHealth, a New Jersey-based managed services organization, to enable Englewood Health to expand its business four-fold, as well as make a rapid pivot to COVID-19 protocols.
November 2020: Alpha Health, the first healthcare revenue cycle management centralized automation organization, announced findings from a nationwide survey to determine the implementation of automation of revenue cycle processes of health systems and hospitals across the U.S.
November 2020: A formal agreement to purchase the technology division of nThrive, a healthcare revenue cycle management company, was signed by private equity firm Clearlake Capital.
Report Overview
The study offers detailed profiles of industry leaders in the management of healthcare revenue cycles and assesses their current market position. Business history, along with annual sales, profit margins, segmental share, SWOT review, growth strategy, new product releases, mergers and acquisitions (M&A) operations, and recent R&D programs, is addressed in granular depth. The report provides a comprehensive analysis of the global healthcare revenue cycle management market for the scope of the study.
By Type
- Integrated Software
- Standalone Software
By Component
- Software
- Services
By Deployment
- On-premise
- Cloud/Web-Based
By End-user
- Hospitals
- Ambulatory Services
Report Scope:
| Report Attribute/Metric | Details |
|---|---|
| Market Size | USD 175.16 Billion |
| CAGR | 12.2% (2017-2027) |
| Base Year | 2019 |
| Forecast Period | 2020-2027 |
| Historical Data | 2018 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Component, Deployment and End-user |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | General Electric Company (U.S.), Epic Systems (U.S.), Cerner Corporation (U.S.), McKesson Corporation (U.S.), Quest Diagnostics (U.S.), Allscripts (U.S.), Siemens Healthcare (Germany) |
| Key Market Opportunities | Standalone HRCM software to provide the industry with many growth opportunities |
| Key Market Drivers | Availability of Advanced Technological Innovations to Drive the Market Growth |
Frequently Asked Questions (FAQ) :
The global healthcare revenue cycle management market is valued to touch USD 1,75,163.5 million by 2027.
The global healthcare revenue cycle management market can exhibit a CAGR of 12.2% from 2017 to 2027.
The use of healthcare RCM software which can alleviate the voluminous load in the billing department of hospitals is the major driver of the global healthcare revenue cycle management market.
Paucity of adept professionals at handling the healthcare RCM software can deter the global healthcare revenue cycle management market.
General Electric Company, Epic Systems, McKesson Corporation, Quest Diagnostics, Siemens Healthcare, Cerner Corporation, and Allscripts are key players of the global healthcare revenue cycle management market.
Healthcare Revenue Cycle Management Market – Summary
The burgeoning healthcare industry is now heavily banking on the efficient financial transaction. A well-ensured future in terms of finance is needed if the market seeks further advancements in service and innovation in technologies. Healthcare revenue cycle management (RCM) is software that conforms to the demands of the industry and fortifies the financial aspect of it furthering development. Claim processing, payment and revenue generation are what constitutes the entire system, and by maintaining the patient revenue cycle, it fetches a favorable record for hospitals and healthcare sectors. Its impact is so profound and far-reaching that market valuation of USD 1,75,163.5 million seems to be an easily achievable target by 2027, almost a four-times increase from its previous market estimation of 2016. Market Research Future (MRFR), while gathering information for the same market, implemented a holistic approach to have a precise report predicting the forthcoming period backed by in-depth knowledge of the same field.
Simplification of the financial status made possible by the RCM software of various hospitals is spurring the growth of the global RCM software market. By easing the process of managing, identification, and collection of data, it has substantially assisted the healthcare sector in benefitting much. And the increasing fund allotment to the healthcare segment can vouch for its growing adoption. This is evident from the reports, published by the U.S. Census Bureau, where it had been highlighted that the hospital care expenditure in 2015 in the U.S. alone had touched USD 831.5 billion.
Various institutions are showing signs of an inclination towards integrated healthcare system where the all-inclusive service depends majorly on access, quality, user satisfaction, and efficiency. Its structure is founded upon services related to diagnosis, treatment, care, rehabilitation, and health promotion. The trend is gaining momentum in the U.S. and Europe, where it has become popular with the massive patient pool. E-healthcare is also getting enough foothold to substantially assist the market. These developments have only led to a better implementation of quality research, treatment, and management. At the same time, individual healthcare spending is witnessing an increase in figures which is bolstering the RCM software market’s growth.
However, RCM software’s efficient implementation requires adept professionals in-charge of its operation. But, a dearth in their number can impede the market growth as slight errors could lead to an altogether different result. This works like a supply chain and a faulty figure on one end can trigger a landslide on the other.
Segmentation:
Based on the product type, the market can be segmented into advanced integrated software and standalone software. The advanced integrated software accrues almost 81.4% of the total revenue generated in the market and is blessed with the fastest CAGR of 12.3% during the forecast period.
Component-based segmentation of the market includes software and services. The software segment is gaining precedence considerably in the global market owing to its applicational ease, and it commanded the largest market share in 2016.
Deployment-wise segmentation comprises on-premise and on-cloud/web-based. On-cloud section is gaining much traction. However, on-premise application held the largest share of the market in 2016 as many still find complete cloud solution a bit difficult to operate.
Based on end-users, the market can be segmented into hospitals and ambulatory services. Hospitals hold the major share, and many rely heavily on its assistance in cases of emergency.
Regional Analysis:
The geographical analysis of the market covers namely the Americas, Europe, Asia Pacific (APAC) and the Middle East & Africa (MEA).
The Americas take the onus of generating the maximum revenue as the region has this tendency to rely heavily on advanced technology. Advanced infrastructure accommodates such a wide-spread implementation of RCM software which benefits all. In addition, the market is profiting much from several major players presence in the segment, along with a scheduled substantial healthcare expenditure every year.
Europe is holding the second position, and it can be attributed to increasing government support in research and development. Other features such as well-developed healthcare infrastructure and considerable healthcare funding are quite similar in their impact to that of the Americas.
The APAC is all set to register the fastest growth. Emerging economies of the region are changing the healthcare sector remarkable, and many of them are evolving as a medical tourism hub which as a consequence, is assertively impacting the global RCM market. However, the MEA is still lagging much behind as the region has quite a few poor and slow developing countries.
Market Dashboard:
Many healthcare organizations are using robotic process automation, intelligent EDI integration, insurance discovery and patient solutions for a superior collection process. This integration in the healthcare sector has increased the need for RCM software considerably which has led to an increased profit. Major companies are trying much to bank on this system. Emerging economies are also looking at it as a must-needed option to gain more.
MRFR’s extensive research reveals that many market players are employing methods such as the development of innovative & advanced software, and acquisition. However, Epic Systems Corporation, McKesson Corporation, Cerner Corporation, and GE Healthcare are sharing almost 9.8% share of the global healthcare RCM market.
Global Healthcare Revenue Cycle Management (RCM) Market: Competitive Landscape
A limited number of industries are working in the development of healthcare revenue cycle management (RCM). Through extensive research, it is found that market players have adopted the strategy of development of innovative and advanced software and acquisitions. On the basis of the market study, we found some key players operating in this market such as Epic Systems Corporation, McKesson Corporation, Cerner Corporation, GE Healthcare, Allscripts, and Siemens Healthcare. These companies account for more than 9.8% share of the global healthcare RCM market.
McKesson Corporation is one of the leading players in the market with a huge global presence and over 68,000 employees. The company has a significant presence in the Americas, Europe, and Asia-Pacific and its research and manufacturing units are present in over one dozen countries. The company accounts for 4.4% of the market share owing to a well-developed market and worldwide presence, which is expected to witness a rise during the assessment period.
Founded in 1979, Epic Systems Corporation headquartered in Wisconsin, US is a healthcare software company. The company is focused on developing integrated suite for the healthcare sector. The company accounts for 2.5% market share in the global healthcare revenue cycle management market. Epic Systems was voted as the top overall software suite in 2018 Best in KLAS awards. The company has received this award eight years in a row. Epic Systems received the Best in KLAS awards in seven segments.
Cerner Corporation, headquartered in Missouri, US is the supplier of health information technology solutions, services, devices, and hardware. The company accounts for 1.2% market share in the global healthcare revenue cycle management market. In April 2015, the company collaborated with Tableau Software to improve the information disclosure experience of healthcare organizations through intuitive data exploration, thus enhancing its product portfolio.
GE Healthcare headquartered in Illinois, the US is a multinational conglomerate company. The company was incorporated in 1994 and operates in more than 100 countries. The company accounts for 1.7% market share in the global healthcare revenue cycle management market. GE Healthcare, a leading provider of healthcare information technology, offers the next-generation revenue cycle management solution for hospital networks, academic medical centers, large practices, and physician billing groups. The software enables enterprises to achieve greater profitability and efficiency by streamlining administrative tasks from the front desk to the billing office and accelerating revenue collection from payers to providers.
Each of them is committed to providing high-quality products to enhance the patient care. These players established themselves as major companies across the globe. They are investing in research, awareness, marketing, and technology advancement. They also focus on acquisitions, partnerships, collaborations, expansions, and new product launches to obtain the maximum market share.